Year: 2009
Resolution Number: 96
Action Taken: Disapproved
Status:
Author(s): Judith A. Hiemenga, MD
Sponsor: Domenic R. Federico, MD
On behalf of: Kent County Delegation
Committee: B (Legislation)
Resolved Section(s):
RESOLVED: That the Michigan Delegation to the AMA ask the AMA to form a national insurance pool to allow individuals or employees of small companies to be able to purchase insurance coverage at a discounted rate similar to other large purchasing groups.REFERENCE COMMITTEE RATIONALE: Insurance pooling is an attempt to negate the ability of insurers to offer steep discounts to large clients while shifting a greater percentage of their costs to smaller groups. Insurance offered through trade associations already provides many of the benefits of insurance pools at the state level. The Committee did not agree with the resolved portion of the resolution that insurance discounts are solely based on the size of an organization. Group policy underwriting and individual policy underwriting vary greatly in terms of the assumptions used by insurers. Therefore, simply aggregating many individual policies may not result in a population that would be similar to that of a large employer and therefore the conclusion that savings would be realized is somewhat speculative.
RESOLVED: That the Michigan Delegation to the AMA ask the AMA to form a national insurance pool to allow individuals or employees of small companies to be able to purchase insurance coverage at a discounted rate similar to other large purchasing groups.REFERENCE COMMITTEE RATIONALE: Insurance pooling is an attempt to negate the ability of insurers to offer steep discounts to large clients while shifting a greater percentage of their costs to smaller groups. Insurance offered through trade associations already provides many of the benefits of insurance pools at the state level. The Committee did not agree with the resolved portion of the resolution that insurance discounts are solely based on the size of an organization. Group policy underwriting and individual policy underwriting vary greatly in terms of the assumptions used by insurers. Therefore, simply aggregating many individual policies may not result in a population that would be similar to that of a large employer and therefore the conclusion that savings would be realized is somewhat speculative.
Fiscal Note: NULL
Resolution: View PDF for Medical Society Medical Insurance Pools